Bill Amendment: AZ HB2706 | 2016 | Fifty-second Legislature 2nd Regular
Bill Title: Budget reconciliation; higher education; 2016-2017
Status: 2016-05-03 - House Committee of the Whole action: Do Pass Amended [HB2706 Detail]
Download: Arizona-2016-HB2706-HOUSE_PROPOSED_AMENDMENT_Appropriations.html
Fifty-second Legislature Appropriations
Second Regular Session H.B. 2706
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2706
(Reference to printed bill)
Strike pages 1 through 5
Page 6, strike lines 1 through 15, insert:
"Section 1. Section 15-1601, Arizona Revised Statutes, is amended to read:
15-1601. State universities; location; faculty powers; governing boards
A. The Arizona board of regents shall maintain State universities shall be located at Flagstaff in Coconino county, at Tempe in Maricopa county and at Tucson in Pima county, and the universities are respectively designated northern Arizona university, Arizona state university and the university of Arizona. The board shall maintain An Arizona state university campus in western Maricopa county shall be designated as Arizona state university west campus, which shall be identified as a separate budget unit in the general appropriations act. The board shall maintain An Arizona state university campus in eastern Maricopa county shall be designated as Arizona state university east campus, which shall be identified as a separate budget unit in the general appropriations act. The board may establish and maintain Other colleges and universities may be established subject to legislative authority. Subject to review by the joint committee on capital review, the governing board of a university may establish new campuses that are separate from any location in existence on July 1, 2007. The Arizona state university campus at Tempe shall provide administrative support for the Arizona state university campuses in western Maricopa county and in eastern Maricopa county.
B. The universities shall have colleges, schools and departments and give courses of study and academic degrees as the board approves. Subject to the responsibilities and powers of the governing board of each university and the university presidents, the faculty members of the universities, through their elected faculty representatives, shall share responsibility for academic and educational activities and matters related to faculty personnel. The faculty members of each university, through their elected faculty representatives, shall participate in the governance of their respective universities and shall actively participate in the development of university policy.
c. Each university shall be governed by a governing board for that university. The governing board of arizona state university shall consist of five members who are appointed by the governor pursuant to section 38‑211. The governing board of the university of arizona shall consist of five members who are appointed by the governor pursuant to section 38‑211. The governing board of northern arizona university shall consist of three members who are appointed by the governor pursuant to section 38‑211. Subject to legislative approval, the governing board of northern arizona university may be expanded to five members if the student enrollment of northern arizona university meets or exceeds the average student enrollment at arizona state university and the university of arizona. THE INITIAL MEMBERS SHALL ASSIGN THEMSELVES BY LOT TO two TERMS OF two years, two terms of three years and one term of four YEARS IN OFFICE, to begin and end on the third Monday in January. THE CHAIRPERSON SHALL NOTIFY THE GOVERNOR'S OFFICE ON APPOINTMENTS OF THESE TERMS. ALL SUBSEQUENT MEMBERS SERVE four YEAR TERMS OF OFFICE, to begin and end on the third Monday in January. Governing board MEMBERS ARE NOT ENTITLED TO COMPENSATION.
D. The governing board of each university is a body corporate with perpetual succession and may:
1. Adopt a corporate seal.
2. Contract.
3. Sue and be sued.
4. Purchase, receive, hold, make and take leases and long term leases of and sell real and personal property for the benefit of this state and for the use of the university.
E. Members of the governing board of each university are immune from personal liability with respect to all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings with approval of a majority of the board.
Sec. 2. Heading change
The article heading of title 15, chapter 13, article 2, Arizona Revised Statutes, is changed from "ARIZONA BOARD OF REGENTS" to "GOVERNING BOARDS OF UNIVERSITIES".
Sec. 3. Section 15-1624, Arizona Revised Statutes, is amended to read:
15-1624. Meetings of governing board advisory committees; student records; executive session
Notwithstanding the provisions of section 38‑431.01, subsection A, meetings of advisory committees to the governing board of each university involving student records may be held in executive session. A student whose records are to be considered may request that the meeting be held as a public meeting in which case the meeting pertaining to such student's records shall not be in executive session.
Sec. 4. Section 15-1625, Arizona Revised Statutes, is amended to read:
15-1625. General powers of Arizona board of regents; prohibition; limitation
A. The Arizona board of regents is a body corporate with perpetual succession. The board has jurisdiction and control over an advisory board of the universities and is responsible for the GENERAL conduct, but not SUPERVISION or leadership, of the universities.
B. The board may:
1. Adopt a corporate seal.
2. Contract.
3. Sue and be sued.
4. Purchase, receive, hold, make and take leases and long‑term leases of and sell real and personal property for the benefit of this state and for the use of the institutions under its jurisdiction.
1. submit recommendations to the governing board of each university.
2. Meet to evaluate the performance of the president of each university.
3. Nominate potential replacements when a vacancy occurs in the office of the president of a university.
4. Act as a mediator if a university president is terminated from employment.
C. The arizona board of regents shall not hire or employ staff.
D. Notwithstanding any other law, the only responsibilities, powers, duties or authority prescribed to the arizona board of regents are those responsibilities, powers, duties and authority specifically prescribed in this section.
Sec. 5. Section 15-1626, Arizona Revised Statutes, is amended to read:
15-1626. General administrative powers and duties of governing boards of universities; definition
A. The governing board of each university shall:
1. Have and exercise the powers necessary for the effective governance and administration of the institutions university under its control. To that end, the governing board of each university may adopt, and authorize each university to adopt, such regulations, policies, rules or measures as are deemed necessary and may delegate in writing to its committees, to its university presidents, or their designees, or to other entities under its control, any part of its authority for the administration and governance of such institutions university, including those powers enumerated in section 15‑1625, subsection B, paragraphs 2 and 4, paragraphs 3, 4, 8, 9, 11 and 12 of this subsection and subsection B of this section. Any delegation of authority may be rescinded by the governing board of the university at any time in whole or in part.
2. Appoint and employ and determine the compensation of presidents with such power and authority and for such purposes in connection with the operation of the institutions university as the governing board of the university deems necessary.
3. Appoint and employ and determine the compensation of vice‑presidents, deans, professors, instructors, lecturers, fellows and such other officers and employees with such power and authority and for such purposes in connection with the operation of the institutions university as the governing board of the university deems necessary, or delegate its authority pursuant to paragraph 1 of this subsection.
4. Remove any officer or employee when the interests of education in this state so require in accordance with its personnel rules and policies.
5. Fix tuitions and fees to be charged and differentiate the tuitions and fees between institutions and between residents, nonresidents, undergraduate students, graduate students, students from foreign countries and students who have earned credit hours in excess of the credit hour threshold. For the purposes of this paragraph, the undergraduate credit hour threshold is one hundred forty‑five hours for students who attend a university under the jurisdiction of the governing board of the university. The undergraduate credit hour threshold shall be based on the actual full‑time equivalent student enrollment counted on the forty‑fifth day of every fall and spring semester, divided by two, and any budget adjustment based on student enrollment shall occur in the fiscal year following the actual full‑time equivalent student enrollment count. The undergraduate credit hour threshold shall not apply to degree programs that require credit hours above the credit hour threshold, credits earned in the pursuit of up to two baccalaureate degrees, credits earned in the pursuit of up to two state regulated licensures or certificates, credits earned in the pursuit of teaching certification, credits transferred from a private institution of higher education, credits transferred from an institution of higher education in another state, credits earned at another institution of higher education but that are not accepted as transfer credits at the university where the student is currently enrolled and credits earned by students who enroll at a university under the jurisdiction of the governing board of the university more than twenty-four months after the end of that student's previous enrollment at a public institution of higher education in this state. On or before October 15 of each year, the board governing boards of each university shall jointly report to the joint legislative budget committee the number of in‑state students and out‑of‑state students who were enrolled at universities under the jurisdiction of the governing board of the university during the previous fiscal year who met or exceeded the undergraduate credit hour threshold prescribed in this paragraph. The amount of tuition, registration and fees and other revenues included in the operating budget for the university adopted by the governing board of the university as prescribed in paragraph 13 of this subsection shall be subject to legislative APPROPRIATION and deposited, pursuant to sections 35‑146 and 35‑147 in a separate tuition and fees subaccount for each university. All other tuition and fee revenue shall be retained by each university for expenditure as approved by the governing board of the university, except that in a separate local tuition and fees subaccount for each university. This subaccount shall consist of only tuition and fees. The universities university shall not use any tuition or fee revenue to fund or support an alumni association.
6. Except as provided in subsection I of this section, adopt rules to govern its tuition and fee setting process that provide for the following:
(a) At least one public hearing at each university as an opportunity for students and members of the public to comment on any proposed increase in tuition or fees.
(b) Publication of the notice of public hearing at least ten days prior to the hearing in a newspaper of general circulation in Maricopa county, Coconino county and Pima county. The notice shall include the date, time and location of the public hearing.
(c) Public disclosure by each university of any proposed increases in tuition or fees at least ten days prior to the public hearing.
(d) Final board action by the governing board of each university on changes in tuition or fees shall be taken by roll call vote.
The procedural requirements of subdivisions (a), (b), (c) and (d) of this paragraph apply only to those changes in tuition or fees that require board approval by the governing board of the university.
7. Pursuant to section 35‑115, submit a budget request for each institution under its jurisdiction that includes the estimated tuition and fee revenue available to support the programs of the institution as described in the budget request. The estimated available tuition and fee revenue shall be based on the tuition and registration fee rates in effect at the time the budget request is submitted with adjustments for projected changes in enrollment as provided by the governing board of the university.
8. Establish curriculums and designate courses at the several institutions university that in its judgment will best serve the interests of this state.
9. Award such degrees and diplomas on the completion of such courses and curriculum requirements as it deems appropriate.
10. Prescribe qualifications for admission of all students to the universities university. The governing board of the university shall establish policies for guaranteed admission that assure fair and equitable access to students in this state from public, private and charter schools and homeschools. For the purpose of determining the qualifications of honorably discharged veterans, veterans are those persons who served in the armed forces for a minimum of two years and who were previously enrolled at a university or community college in this state. No prior failing grades received by the veteran at the university or community college in this state may be considered.
11. Adopt any energy conservation standards promulgated by the department of administration for the construction of new buildings.
12. Employ for such time and purposes as the governing board of the university requires attorneys whose compensation shall be fixed and paid by the governing board of the university. Litigation to which the governing board of the university is a party and for which self‑insurance is not provided may be compromised or settled at the direction of the governing board of the university.
13. Adopt annually an operating budget for each university equal to the sum of appropriated general fund monies and the amount of tuition, registration fees and other revenues approved by the governing board of the university and allocated to each university operating budget.
14. In consultation with the state board of education and other education groups, develop and implement a program to award honors endorsements to be affixed to the high school diplomas of qualifying high school pupils and to be included in the transcripts of pupils who are awarded endorsements. The governing board of the university shall develop application procedures and testing criteria and adopt testing instruments and procedures to administer the program. In order to receive an honors endorsement, a pupil must demonstrate an extraordinary level of knowledge, skill and competency as measured by the testing instruments adopted by the board in mathematics, English, science and social studies. Additional subjects may be added at the determination of the governing board of the university. The program is voluntary for pupils.
15. Require the publisher of each literary and nonliterary textbook used in the universities of this state university to furnish computer software in a standardized format when software becomes available for nonliterary textbooks to the Arizona board of regents governing board of the university from which braille versions of the textbooks may be produced.
16. Require universities that provide a degree degrees in education to require courses that are necessary to obtain a provisional structured English immersion endorsement as prescribed by the state board of education.
17. Acquire United States flags for each classroom that are manufactured in the United States and that are at least two feet by three feet and hardware to appropriately display the United States flags, acquire a legible copy of the Constitution of the United States and the Bill of Rights, display the flags in each classroom in accordance with title 4 of the United States Code and display a legible copy of the Constitution of the United States and the Bill of Rights adjacent to the flag.
18. To facilitate the transfer of military personnel and their dependents to and from the public schools of this state, pursue, in cooperation with the state board of education, reciprocity agreements with other states concerning the transfer credits for military personnel and their dependents. A reciprocity agreement entered into pursuant to this paragraph shall:
(a) Address procedures for each of the following:
(i) The transfer of student records.
(ii) Awarding credit for completed course work.
(iii) Permitting a student to satisfy the graduation requirements prescribed in section 15‑701.01 through the successful performance on comparable exit-level assessment instruments administered in another state.
(b) Include appropriate criteria developed by the state board of education and the Arizona board of regents governing board of the university.
19. Require a university to publicly post notices of all of its employment openings, including the title and description, instructions for applying and relevant contact information.
20. In consultation with the community college districts in this state, develop and implement common equivalencies for specific levels of achievement on advanced placement examinations and international baccalaureate examinations in order to award commensurate postsecondary academic credits at community colleges and public universities in this state.
21. On or before August 1 of each year, report to the joint legislative budget committee the graduation rate by university campus during the previous fiscal year. The governing board of the university shall also report the retention rate by university campus and by class, as determined by date of entry during the previous fiscal year.
B. The governing board of each university shall adopt personnel policies for all employees of the board and the universities university.
C. In conjunction with the auditor general, the governing board of each university shall develop a uniform accounting and reporting system, which shall be reviewed by the joint legislative budget committee before final adoption by the board. The governing board of the university shall require each the university to comply with the uniform accounting and reporting system.
D. The governing board of each university may employ legal assistance in procuring loans for the institutions university from the United States government. Fees or compensation paid for such legal assistance shall not be a claim on the general fund of this state but shall be paid from funds of the institutions university.
E. The governing board of the university of Arizona shall approve or disapprove any contract or agreement entered into by the university of Arizona hospital with the Arizona health facilities authority.
F. The governing board of each university may adopt policies that authorize the institutions university under its jurisdiction to enter into employment contracts with nontenured employees for periods of more than one year but not more than five years. The policies shall prescribe limitations on the authority of the institutions university to enter into employment contracts for periods of more than one year but not more than five years, including the requirement that the governing board of the university approve the contracts.
G. The governing board of the university may adopt a plan or plans for employee benefits that allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.
H. The governing board of each university may establish a program for the exchange of students between the universities university under the jurisdiction of the governing board of the university and colleges and universities located in the state of Sonora, Mexico. Notwithstanding subsection A, paragraph 5 of this section, the program may provide for in‑state tuition at the universities university under the jurisdiction of the governing board of the university for fifty Sonoran students in exchange for similar tuition provisions for up to fifty Arizona students enrolled or seeking enrollment in Sonoran colleges or universities. The governing board of the university may direct the universities university to work in conjunction with the Arizona‑Mexico commission to coordinate recruitment and admissions activities.
I. Subsection A, paragraph 6, subdivisions (a), (b), (c) and (d) of this section do not apply to fee increases that are set by individual universities and that do not require approval by the Arizona board of regents before the fee increase becomes effective.
J. I. The Arizona board of regents governing board of each university, in collaboration with the universities university under its jurisdiction, shall adopt a performance funding model. The performance funding model shall use performance metrics that include the increase in degrees awarded, the increase in completed student credit hours and the increase in externally generated research and public service funding. The funding formula may give added weight to degrees related to science, technology, engineering and mathematics and other high‑value degrees that are in short supply or that are essential to this state's long-term economic development strategy.
K. J. The Arizona board of regents governing board of each university shall use the performance funding model adopted pursuant to subsection J I of this section in developing and submitting budget requests for the universities university under its jurisdiction.
L. K. On or before November 1 of each year, the Arizona board of regents governing board of each university shall jointly submit to the joint legislative budget committee and the governor's office of strategic planning and budgeting a report on university debt and obligations, including:
1. Long‑term notes and obligations.
2. Certificates of participation and other obligations pursuant to any lease‑purchase agreements.
3. Revenue bonds.
4. Bonds issued pursuant to section 15‑1682.03.
M. L. The report issued pursuant to subsection L K of this section shall contain, for the most recent fiscal year:
1. The aggregate level of outstanding principal and the principal and interest payments, by type of debt or obligation.
2. An itemization, by campus and project, of the amount of yearly principal and interest to be paid in the most recent and the next five fiscal years.
N. M. The governing board of each university may enter into an intergovernmental agreement pursuant to section 15-1747 to manage universities the university under its jurisdiction subject to the terms of the reciprocity agreement.
O. N. For the purposes of this section, "university debt and obligations" means debt and obligations, the principal and interest of which are paid in whole or in part with university monies.
Sec. 6. Section 15-1626.01, Arizona Revised Statutes, is amended to read:
15-1626.01. Transfer of fees for student organizations; prohibition; support
A. A university under the jurisdiction of the Arizona board of regents shall not transfer any portion of the tuition or fees collected from students pursuant to section 15‑1626 or use any university student billing process to collect monies on behalf of an organization not under the jurisdiction of the Arizona board of regents and not recognized as a university student organization.
B. A university under the jurisdiction of the Arizona board of regents may establish and support student government at the university and the university recognized student organizations and clubs, and provide support for these student groups from tuition and fees pursuant to section 15‑1633.
Sec. 7. Section 15-1627, Arizona Revised Statutes, is amended to read:
15-1627. Control of vehicles and nonpedestrian devices on university property; sanctions; compliance with emissions inspection; definition
A. Each university may adopt rules for the control of vehicles and nonpedestrian devices on its property with respect to the following only: maximum speed of vehicles and nonpedestrian devices, direction of travel, authorized hours of travel, required stops in traffic, place of parking, method of parking, time of parking, nonparking areas, restricted areas, prohibition of parking in vehicle emissions control areas as defined in section 49‑541 of those vehicles which fail to comply with section 49‑542 and designation of special parking areas for students, faculty, staff and the general public. Each university may prescribe and collect reasonable fees for specially designated parking areas. Each university shall cause signs and notices to be posted upon the property for the regulation of vehicles and nonpedestrian devices.
B. The rules adopted by each university pursuant to subsection A of this section shall be enforced administratively by each university. As to students, faculty and staff, these procedures may, but need not, involve both student and faculty adjudicating bodies, as long as all procedures give the individual notice and an opportunity to be heard concerning the alleged infractions and any sanction to be imposed upon him. Administrative and disciplinary sanctions may be imposed upon students, faculty and staff for a violation of the rules including, but not limited to: a reasonable monetary penalty, impoundment, regular institutional discipline, withdrawal or suspension of campus parking privileges, encumbrances of records or grades, or both, and oral or written reprimand. Habitual or flagrant disregard of rules shall be a ground for suspension or expulsion from the university for a student and may be taken into consideration as to faculty and staff in regard to amount of salary and continuation of employment.
C. Members of the general public who park their vehicles in an unauthorized manner upon the property of a university shall be warned concerning their unauthorized parking and, if they continue, or if such persons habitually park in such an unauthorized manner, the vehicles so parked may be impounded by the institution university and a reasonable fee exacted for the cost of impoundment and storage.
D. Members of the general public who violate a rule adopted by the university pursuant to subsection A of this section regarding the use of nonpedestrian devices shall be warned of a violation and any nonpedestrian devices may be impounded by the university and a reasonable fee may be exacted for the cost of impoundment and storage.
E. Any person who has received a final administrative ruling concerning a sanction imposed upon him as a result of a violation of a rule pursuant to subsection A of this section shall have the right to have that ruling reviewed by the superior court in the county in which the institution university involved is situated, in accordance with the provisions of the administrative review act, title 12, chapter 7, article 6.
F. This section shall be considered supplemental in nature to the general common law and statutory powers of institutions the university under control of the board as to the internal control and activities of their students, faculty and staff.
G. An institution under the jurisdiction of the board of regents and A university which is located in a vehicle emissions control area as defined in section 49‑541 shall prohibit the issuance of annual permits to park on property under its jurisdiction until the applicant submits an affidavit or shows proof that his vehicle meets the requirements of section 49‑542.
H. For the purposes of this section, "nonpedestrian devices" includes bicycles, tricycles, unicycles, skateboards, roller skates and equines.
Sec. 8. Section 15-1628, Arizona Revised Statutes, is amended to read:
15-1628. Powers and procedures pertaining to optional retirement programs
A. The Arizona board of regents The governing board of each university may establish optional retirement programs under which contracts providing retirement and death benefits may be purchased for members of the faculty and administrative officers of the institutions under its jurisdiction university. The benefits to be provided for or on behalf of participants in the optional retirement program shall be provided through annuity contracts, fixed or variable in nature, or a combination thereof, or other retirement plans approved by the Arizona board of regents governing board of each university.
B. Elections to participate in the optional retirement programs shall be made as follows:
1. Eligible employees initially appointed on or after August 9, 1974 shall elect to become members of the Arizona state retirement system or to participate in an optional retirement program established by the Arizona board of regents governing board of each UNIVERSITY. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution university and shall be effective as of the effective date of appointment. If an eligible employee fails to make an election as provided in this paragraph, the eligible employee shall be deemed to have elected membership in the Arizona state retirement system.
2. Eligible employees initially appointed before August 9, 1974 may elect to participate in the optional retirement programs. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution university on or before December 14, 1974, shall become effective as of January 1, 1975 and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law.
3. Any employee who becomes eligible may elect an optional retirement program. The election shall be made in writing and filed with the Arizona state retirement system and the disbursing officer of the employing institution university within thirty days after notice in writing to the employee of the employee's eligibility, and shall become effective on the first day of the pay period following such election, and shall constitute a waiver of all benefits provided by the Arizona state retirement system, except all such benefits as are expressly provided by law.
4. Any eligible employee who is a member of the Arizona state retirement system at the time the employee elects to participate in the optional retirement program shall leave the funds in the employee's retirement account on deposit with the Arizona state retirement system during the continuance of employment. Additional contributions to the employee's retirement account shall not be required and continued service with the Arizona board of regents or an institution under the jurisdiction of the Arizona board of regents university while under an optional retirement program shall be deemed to be member service in the Arizona state retirement system for the purpose of determining eligibility for any benefits under such system. The amount of any such benefits under such system shall be computed only on the basis of service otherwise creditable to a member of the system and the employee's compensation during such service. For purposes of subsection D of this section, years of member service in the Arizona state retirement system shall count as years of service under the optional retirement programs.
C. The Arizona board of regents governing board of each university shall contribute public funds appropriated or any other funds available for such purpose on behalf of each participant in the optional retirement programs in an amount equal to seven per cent of the participant's compensation. Each participant shall also contribute an amount equal to seven per cent of the participant's compensation. The appropriation to each university for purposes of enabling the Arizona board of regents to make the contribution provided in this subsection shall not exceed the employer contribution required under the Arizona state retirement system as prescribed by title 38, chapter 5, article 2. Funds utilized by the board of regents or by a university to pay that portion of the contribution that represents the difference between the employer contribution as prescribed by title 38, chapter 5, article 2 and the contribution rate provided in this subsection for an optional retirement program do not constitute a use of appropriated monies for supplemental retirement.
D. In the case of an electing employee initially appointed on or after August 9, 1974, contributions pursuant to subsection C of this section shall not be made by the Arizona board of regents UNIVERSITY until the employee's completion of five years of service. Employee contributions required during this initial five year period and during continued service with an institution under the jurisdiction of the Arizona board of regents a university shall be promptly remitted to the optional retirement programs approved by the Arizona board of regents governing board of the university. At the end of an electing employee's completion of five years of service, a single contribution in an amount determined pursuant to subsection C of this section, with interest, shall be made by the chief financial officer of the employing institution university to the approved company or companies on behalf of such employee. In the case of an electing employee who does not continue in service with an institution under the jurisdiction of the Arizona board of regents a university for at least five years, the amount of employer contributions, with interest, shall be refunded to this state.
E. If an employee's service is terminated by death prior to the completion of five years of service, a death benefit equal to the sums appropriated for such employee, plus interest, shall be paid to the beneficiary designated by the participant under the participant's optional retirement program.
F. The provisions of subsection D of this section shall not apply to any electing employee who, at the time of initial appointment, owns a contract determined by the Arizona board of regents governing board of the university to be acceptable for use in the optional retirement program.
G. The Arizona board of regents governing board of each university may provide for the administration of such optional retirement programs and perform or authorize the performance of such functions as may be necessary for such purposes. The Arizona board of regents governing board of each university shall approve the company or companies from which benefits may be purchased under the optional retirement programs. Such optional retirement programs shall not permit loans. In giving its approval, the board shall consider:
1. The nature and extent of the rights and benefits to be provided for participants and their beneficiaries.
2. The relation of such rights and benefits to the amount of contributions to be made.
3. The suitability of such rights and benefits to the needs of the participants and the interests of the institutions under its jurisdiction university in the recruitment and retention of faculty and administrative officers.
4. The ability of the approved company or companies to provide such suitable rights and benefits.
H. Any eligible employee initially appointed after August 9, 1974, electing to participate in the optional retirement programs, shall be ineligible for membership in the Arizona state retirement system as long as the employee remains continuously employed in any position by the Arizona board of regents or by an institution under its jurisdiction university, except as expressly provided by law.
I. The benefits, annuities and employee and employer contributions provided for in this section, and all interest, earnings and other credits pertaining to such benefits, annuities and contributions, shall not be subject to execution or attachment and shall be nonassignable. The employee and employer contributions provided for in this section and all interest, earnings and other credits pertaining to such contributions are exempt from state, county and municipal taxes. The benefits and annuities received by an employee under this section after December 31, 1988 are subject to tax pursuant to title 43.
J. Subject to amendment of the federal‑state agreement provided for in section 38‑702, every eligible employee electing to participate in the optional retirement programs shall have old age, survivors and disability insurance coverage provided by the federal social security act in accordance with the provisions of title 38, chapter 5, article 1.
Sec. 9. Section 15-1629, Arizona Revised Statutes, is amended to read:
15-1629. Annual report
Within ninety days after the close of each fiscal year the Arizona board of regents governing boards of each university shall jointly make a report for the fiscal year to the governor. The report shall set forth the state of progress of the universities in their several colleges, schools and departments, the courses of study included in their curricula, the number of professors, other instructional faculty and staff members employed, the number of students registered and attending classes, the amount of receipts and expenditures and such other information as the board governing boards deems deem proper.
Sec. 10. Section 15-1630, Arizona Revised Statutes, is amended to read:
15-1630. Abortion at educational facility prohibited; exception
No abortion shall be performed at any facility under the jurisdiction of the Arizona board of regents governing board of a university unless such abortion is necessary to save the life of the woman having the abortion.
Sec. 11. Section 15-1631, Arizona Revised Statutes, is amended to read:
15-1631. State museum
A. There shall be a state museum for the collection and preservation of the archaeological resources, specimens of the mineral wealth and the flora and fauna of this state.
B. The Arizona board of regents governing board of the university of arizona shall direct and manage the museum and shall set apart sufficient space to accommodate it.
Sec. 12. Section 15-1633, Arizona Revised Statutes, is amended to read:
15-1633. Use of university resources or employees to influence elections; prohibition; civil penalty; definitions
A. A person acting on behalf of a university or a person who aids another person acting on behalf of a university shall not spend or use university resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the university for the purpose of influencing the outcomes of elections or to advocate support for or opposition to pending or proposed legislation. Notwithstanding this section, a university may distribute informational pamphlets on a proposed bond election as provided in section 35‑454 if those informational pamphlets present factual information in a neutral manner. This section does not preclude any of the following:
1. A university from reporting on official actions of the university or the Arizona board of regents.
2. A registered lobbyist from advocating on behalf of the university or the Arizona board of regents.
3. An employee of a university using personal time and resources from influencing the outcomes of elections or from advocating support for or opposition to pending or proposed legislation if the employee does not use university personnel, equipment, materials, buildings or other resources for these purposes.
4. Any university employee from providing classroom instruction on matters relating to politics, elections, laws, ballot measures, candidates for public office and pending or proposed legislation.
5. The use of university resources, including facilities and equipment, for government-sponsored forums or debates if the sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a university facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate.
B. Employees of a university may not use the authority of their positions to influence the vote or political activities of any subordinate employee.
C. This section does not prohibit universities from permitting student political organizations of political parties, including those that are recognized pursuant to sections 16‑801, 16‑802 and 16‑803, to conduct lawful meetings in university buildings or on university grounds, except as prescribed in subsection A of this section. Each student political organization that is allowed to conduct lawful meetings on university property shall have equal access as any other student political organization that is allowed to conduct lawful meetings on university property.
D. This section shall not be construed as denying the civil and political liberties of any person as guaranteed by the United States and Arizona Constitutions.
E. Except as provided in subsection F of this section, universities under the jurisdiction of the Arizona board of regents may not:
1. Provide publicly funded programs, scholarships or courses if the purpose of the program, scholarship or course is to advocate for a specified public policy.
2. Allow publicly funded organizations, institutes or centers to operate on the campus of the university or on behalf of or in association with the university if the purpose of the organization, institute or center is to advocate for a specified public policy.
F. Subsection E of this section does not apply to:
1. A registered lobbyist who advocates on behalf of the university or the Arizona board of regents and other employees assisting such lobbyists in their official capacity.
2. Any university employee who expresses a personal opinion on a political or policy issue, regardless of whether that opinion is expressed inside or outside the classroom.
3. Print or electronic media produced by students who are enrolled at a university.
4. A recognized student government, club or organization of students who are enrolled at a university.
5. Any university employee who is appointed to a government board, commission or advisory panel who provides expert testimony or guidance on public policy.
6. The publication of reports or the hosting of seminars or guest speakers by the university that recommends public policy.
7. Researching, teaching and service activities of university employees that involve the study, discussion, intellectual exercise, debate or presentation of information that recommends public policy.
8. Any other type of advocacy that is allowed by law.
G. The attorney general shall publish and distribute to the Arizona board of regents governing board of each university a detailed guideline regarding activities prohibited under this section. The attorney general may distribute these guidelines through a website or electronically.
H. The attorney general or the county attorney for the county in which an alleged violation of this section occurred may serve on the person an order requiring compliance with this section and may assess a civil penalty of not more than five thousand dollars per violation, plus any amount of misused funds subtracted from the university budget against a person who violates or a person who aids another person in violating this section. The person determined to be out of compliance with this section shall be responsible for the payment of all penalties and misused funds. University funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the university whose funds were misused.
I. An attorney acting on behalf of a university may request a legal opinion of the attorney general as to whether a proposed use of university resources would violate this section.
J. All penalties collected by the court for a suit initiated in superior court by the attorney general shall be paid to the office of the attorney general for the use and reimbursement of costs of prosecution pursuant to this section. All penalties collected by the court for a suit initiated in superior court by a county attorney shall be paid to the county treasurer of the county in which the court is held for the use and reimbursement of costs of prosecution pursuant to this section.
K. For the purposes of this section:
1. "Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters.
2. "Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral.
3. "Misused funds" means university monies or resources used unlawfully pursuant to this section.
Sec. 13. Section 15-1634, Arizona Revised Statutes, is amended to read:
15-1634. Intergovernmental agreements; special assessments
A. Pursuant to section 48‑582 or 48‑920 or in conjunction with any street improvement made pursuant to any other statute, the governing board of each university on behalf of this state or any university may enter into and shall be bound by intergovernmental agreements with one or more cities, counties or improvement districts for the purpose of improving streets adjacent to or running through university property by the construction of any or all of the improvements authorized in either title 48, chapter 4, articles 1 and 2 or title 48, chapter 6, article 1.
B. The agreement may provide that assessments may be levied against university property to secure repayment of the cost of the improvements. So long as this state or the governing board of the university owns the land so assessed the assessment liens may not be enforced by sale or foreclosure. The agreement may also provide that the university's share of any incidental cost may be paid by the governing board of the university from any available fund of that university. The governing board of the university shall pay or cause to be paid the installments of principal and interest coming due on the assessments and may pledge for the payment thereof any monies of the respective university which do not cause the agreement or assessment to become a debt of this state under, or contrary to, any constitutional provision and which do not violate any contract rights of any other person to be paid from the same source. The agreement shall provide that the payments due under the agreement include any penalties and additional interest that the owner of property subject to assessment would be required to pay on the delinquency of an installment of principal or interest.
C. In the agreement the governing board of the university may waive any formal requirement, notice or prerequisite to levying an assessment.
D. If the governing board of the university leases, long‑term leases or sells any parcel subject to an assessment, the governing board of the university shall require that the lessee's or purchaser's initial payment be in an amount at least sufficient to reimburse the governing board of the university for the parcel's allocative share of the monies previously expended to pay the assessment. The governing board of the university shall return such amount to be reimbursed to the source of the monies under subsection B of this section.
E. Upon the sale of any parcel subject to an assessment, the lien of the assessment may be enforced by foreclosure and sale in the manner set forth in the respective statute authorizing the levying of the assessment.
Sec. 14. Section 15-1635, Arizona Revised Statutes, is amended to read:
15-1635. University research development purposes; product development; corporations
A. In order to stimulate the flow of capital into the development of specific products which have advanced beyond the theoretical stage and are capable of being reduced to practice on a commercial scale, the board may by resolution organize one or more corporations under the provisions of title 10. At least one‑half of any voting shares of each such corporation shall be held by the governing board of the university, or a majority of the directors, trustees or members of the corporation shall be designated or appointed by the governing board of the university. No member or employee of the governing board of a university may receive any direct or indirect compensation, other than reimbursement for actual expenses incurred in the performance of his duties, by reason of serving as a member, director or trustee of a corporation organized under this section.
B. No such corporation may be organized unless the governing board of the university finds in its organizational resolution that its formation will stimulate and encourage the development of new products within this state in situations in which financial aid would not otherwise be reasonably available from conventional lending sources. In addition to the powers each corporation may have, each corporation may:
1. Enter into product development agreements with persons doing business in this state, on such terms and conditions as are consistent with the research development purposes of the governing board of the university, to advance financial aid to such persons for the development of specific products, procedures and techniques to be developed and produced in this state and to condition such agreements on contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it.
2. Acquire, lease, purchase, manage, hold and dispose of real and personal property in this state and lease, convey or deal in or enter into contracts with respect to such property on any terms necessary or incidental to carrying out these research and development purposes.
3. Hold patents, copyrights, trademarks or any other evidences of protection or exclusivity as to any products issued under the laws of the United States or any state or nation.
C. Before organizing such a corporation, the governing board of the university shall develop a procedure for applications for financial aid to be forwarded, together with an application fee prescribed by the governing board of the university, to the governing board of the university. The governing board of the university shall investigate and prepare a report concerning the advisability of approving the proposed financial aid for such person and concerning any other factors deemed relevant. The investigation and report shall include such facts about the person under consideration as his history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects and integrity of management as well as the feasibility of the proposed project to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report and after other action as is deemed appropriate, the governing board of the university shall approve or deny the application. The governing board of the university shall promptly notify the applicant of such action. Approval shall be conditioned on payment to the governing board of the university, within such reasonable time after notification of approval as the governing board of the university may specify, of a commitment fee prescribed by the board.
D. The governing board of the university may receive and accept aid or contributions of monies from any source, including gifts or grants from private sources or from any department or agency of the United States or this state, for the purposes of carrying out the provisions of this section.
E. The governing board of the university may also enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through university research.
Sec. 15. Section 15-1635.01, Arizona Revised Statutes, is amended to read:
15-1635.01. Transfer of technology developed by universities; intellectual property policies; officer or employee interest in private entity
A. To encourage the exchange of technological expertise, new research development and other valuable information between private enterprise and the university system in this state and to facilitate the transfer of technology developed by officers or employees of universities under the jurisdiction of the Arizona board of regents to commercial, nonprofit and entrepreneurial enterprises for the economic development of this state and for the public benefit, the Arizona board of regents governing board of the university shall maintain intellectual property policies that allow, on a case‑by‑case negotiated basis, the licensing, assignment or other transfer of intellectual property owned by the governing board of the university to third parties if the transfer is in the best interest of this state and the university system or the transfer otherwise promotes the dissemination of university research for the public benefit.
B. Notwithstanding title 38, chapter 3, article 8, the Arizona board of regents, a university or an entity authorized to manage intellectual property on behalf of the governing board of the university or a university may enter into agreements to transfer intellectual property owned by the governing board of the university to an officer or employee of an institution under the jurisdiction of the Arizona board of regents a university or to an entity in which an officer or employee maintains a substantial interest as defined by section 38‑502.
C. Before concluding an agreement for the transfer of any intellectual property owned by the Arizona board of regents GOVERNING board of a university to an officer or employee of the board or a university or to an entity in which an officer or employee of the governing board of the university or a university maintains a substantial interest, the governing board of the university or university shall do all of the following:
1. Identify, on a case-by-case basis, individual and institutional conflicts of interest and conflicts of commitment that may arise as a result of the proposed transfer.
2. Determine whether the potential conflicts are manageable.
3. If the potential conflicts are manageable, develop a conflict management plan and enter into agreements as necessary for the appropriate management and oversight of the potential conflicts in conformance with policies of the Arizona board of regents and the university.
D. The governing board of the university shall maintain appropriate policies and procedures for the implementation of this section.
Sec. 16. Section 15-1636, Arizona Revised Statutes, is amended to read:
15-1636. Lease of real property and improvements in research park; prohibited and permitted uses
A. The governing board of a university shall not lease real property located in an area defined as a research park pursuant to section 35‑701 unless the lease contains a covenant that prohibits unlimited manufacturing on the site and allows the governing board of the university to enforce the covenant by appropriate means, which may include termination of the lease.
B. The governing board of a university may take title to and lease improvements constructed on land located in an area defined as a research park pursuant to section 35‑701 if the lease contains a covenant that restricts the use of the subject property to the uses permitted under this section. The lease shall allow the board to enforce the covenant by appropriate means, including termination of the lease. The governing board of the university may lease unimproved lots or parcels located in an area defined as a research park pursuant to section 35‑701 for any use by a lessee.
C. The requirements of subsection B of this section do not apply to improvements constructed before July 20, 1996 or to a lease entered into between the board and a lessee, subsidiary, successor, sublessee or assignee of a lessee, who originally entered into any lease with the board before July 31, 1996.
D. The subject property may be used only for the following purposes:
1. Laboratories, offices and other facilities for testing, consulting and information processing, related to research and development.
2. Production, assembly or sale of products pursuant to research and development activities.
3. Pilot plants in which processes planned for use in production elsewhere can be tested and assembled.
4. Regional or national headquarters of the lessee or its subsidiaries that are engaged in research and development or education activities.
5. Education and training facilities.
6. Operations required to maintain or support any permitted use, including maintenance shops, power plants, wastewater treatment facilities, the keeping of animals, machine shops, common area improvements and facilities and professional and commercial services supporting permitted uses, such as child development centers, food services and post office and mailing centers.
Sec. 17. Section 15-1637, Arizona Revised Statutes, is amended to read:
15-1637. Lease of property for health care institution; requirements; conditions; reports; directors, members and officers of nonprofit corporation; definition
A. The Arizona board of regents governing board of a university may lease real property, improvements or personal property owned by the governing board of the university to a nonprofit corporation as lessee for purposes of operating a health care institution as defined in section 36‑401. If the governing board of the university leases such property for such purposes, whether title to improvements on the property rests in the governing board of the university or in the lessee, the lease agreement and any amendments, renewals or extensions of the agreement shall be deemed binding and effective according to its terms. If, under the provisions of the lease, improvements or personal property related to the operation of a health care institution are conveyed to the nonprofit corporation, they shall be presumed to have been conveyed for their then fair market value.
B. Any lease agreement entered into pursuant to subsection A of this section may, at the discretion of the Arizona board of regents governing board of a university, contain provisions requiring the nonprofit corporation to acquire the approval of the Arizona board of regents governing board of the university prior to entering into any business transactions that may adversely affect the interests of this state or that are contained in subsection G, paragraph 2 of this section. The Arizona board of regents governing board of the university shall specify in the lease agreement the type and nature of such transactions which require prior approval of the governing board of the university.
C. To satisfy the requirements of section 103 of the internal revenue code, as defined in section 43‑105, any nonprofit corporation which is a lessee as described in subsection A of this section is declared to be:
1. A validly organized and existing body politic and corporate exercising its powers for the benefit of the people, to improve their health and welfare and to increase their prosperity.
2. Engaged in a purpose essential to public health care.
3. Performing an essential governmental function.
D. Any nonprofit corporation which is a lessee as described in subsection A of this section is exempt from property taxation by this state or any agency or subdivision of this state and possesses and may exercise only those powers of the Arizona board of regents governing board of the university which are delegated to the nonprofit corporation by the Arizona board of regents governing board of the university and which are necessary to satisfy the requirements of section 103 of the internal revenue code, as defined in section 43‑105, as specified in the terms, conditions, restrictions and agreements of the lease agreement. These powers are in addition to all those powers granted to a nonprofit corporation by title 10, chapters 24 through 40.
E. Any nonprofit corporation which is a lessee as described in subsection A of this section may issue bonds and incur obligations and pledge its revenues as security for the payment of the bonds or other obligations for health care institutional purposes to the extent provided by the lease agreement or amendments, renewals or extensions of the agreement. Nothing in this section shall be construed to authorize the incurrence of a debt by the state within the meaning of any constitutional restriction on debt.
F. Except as provided in subsection G of this section, any nonprofit corporation which is a lessee as described in subsection A of this section may acquire by purchase, lease or otherwise, and may operate, other health care institutions and real and personal property for purposes of providing products and services related to the operation of health care institutions owned, leased or operated by it. Such acquisition or operation does not affect the powers, rights, privileges or immunities conferred on such nonprofit corporation by this section.
G. No nonprofit corporation which is a lessee as described in subsection A of this section shall:
1. Until September 1, 1986 enter into any agreement with a county or a nonprofit corporation to which property is conveyed pursuant to section 11‑256.03, subsection A if the agreement provides for the conveyance of any ownership interest whatever in the nonprofit corporation to which property is conveyed pursuant to section 11‑256.03, subsection A or in the property described in section 11‑256.03, subsection A. After August 31, 1986 any such agreement must be approved by the Arizona board of regents governing board of the university and the legislature. This subsection does not prevent the grant of an option to purchase such property, provided that the option may not be exercised before September 1, 1986 and the exercise of the option must be approved by the Arizona board of regents governing board of the university and the legislature. Under no circumstances shall any state general fund monies be used to acquire any interest in such property.
2. Own, lease, manage or operate any other health care institution or other real or personal property unless such acquisition, management or operation either:
(a) Relates to and furthers the educational or research purposes and goals of the university of Arizona hospital.
(b) Promotes the efficient and economical operation of the university of Arizona hospital or any other health care institution acquired pursuant to paragraph 1 of this subsection.
H. A nonprofit corporation which is a lessee as described in subsection A of this section may manage and operate property described in section 11‑256.03, subsection A subject to the restrictions of subsection G of this section. Any management or operation agreement shall provide that the nonprofit corporation which is a lessee as described in subsection A of this section shall not be liable for any bonds or other obligation of any kind relating to the ownership or operation of the property described in section 11‑256.03, subsection A incurred before the property is conveyed to such nonprofit corporation in accordance with subsection G of this section.
I. A health care institution which is the subject of a lease agreement as described in subsection A of this section is subject to section 15‑1630.
J. A nonprofit corporation which is a lessee as described in subsection A of this section shall make semiannual progress reports as to its financial status and deliver them on January 1 and July 1 of each year to the Arizona board of regents governing board of a university, the president of the senate, the speaker of the house of representatives and the governor. The nonprofit corporation shall present an independently audited financial statement to the auditor general within ninety days of the close of the previous fiscal year. The auditor general shall review such statements and transmit them together with a report to officers entitled to receive progress reports by this subsection.
K. Any nonprofit corporation which is a lessee as described in subsection A of this section shall:
1. Be organized as a nonprofit corporation pursuant to title 10, chapters 24 through 40 only upon the approval of the Arizona board of regents governing board of the university.
2. Be governed by a board of directors, the members of which are appointed by the Arizona board of regents governing board of the university, provided that no more than forty‑nine per cent of the members of such board of directors of the nonprofit corporation shall be officers or employees of this state and of such forty‑nine per cent only two members of such board of directors may be members of the Arizona board of regents governing board of the university. Members of the Arizona board of regents governing board of the university who are appointed to the board of directors of such nonprofit corporation shall be residents of different counties unless all members of the board of regents governing board of the university are residents of the same county.
3. Be organized under articles of incorporation or bylaws approved by the Arizona board of regents governing board of the university which shall provide among other things that:
(a) No earnings of the nonprofit corporation shall inure to the benefit of or be distributable to its members, directors, officers or other individuals, except that the nonprofit corporation shall be authorized to pay reasonable compensation for services rendered to it by individuals other than members of the board of directors of the nonprofit corporation acting solely in such capacity, to reimburse expenses in connection with services rendered to or expenses incurred on behalf of the nonprofit corporation and to make payments and distributions in furtherance of the purposes of the nonprofit corporation.
(b) Upon the dissolution or liquidation of the nonprofit corporation, the board of directors of the nonprofit corporation shall, after paying or making provision for the payment of all of the liabilities of the nonprofit corporation, distribute all of the assets of the nonprofit corporation to the Arizona board of regents governing board of the university or its successor.
(c) Neither the articles of incorporation nor the bylaws of the nonprofit corporation shall be amended without the approval of the Arizona board of regents governing board of the university.
(d) The board of directors of the nonprofit corporation may adopt nondiscriminatory rules and regulations providing for the use of the university of Arizona hospital by, and staff privileges for, any persons licensed under title 32, chapter 7, 13 or 17 whether or not such persons have a faculty teaching appointment with the school of medicine, providing, however, that such rules and regulations shall contain requirements sufficient to protect the educational and research purposes and goals of the university of Arizona hospital.
L. No member of the Arizona board of regents governing board of the university who is also a member or director of a nonprofit corporation which is a lessee as described in subsection A of this section shall as a regent vote upon any matter pertaining to such a corporation as may come before the Arizona board of regents governing board of the university.
M. For the purposes of this section "nonprofit corporation" means a corporation as defined in section 10‑3140.
Sec. 18. Section 15-1639, Arizona Revised Statutes, is amended to read:
15-1639. University recruitment and retention program for economically disadvantaged, minority and underrepresented student populations
A. The three universities under the jurisdiction of the board of regents shall each establish a comprehensive plan to initiate new programs and expand existing student recruitment and retention programs directed at economically disadvantaged, minority and underrepresented student populations. The plan shall incorporate at least the following:
1. Programs which are directed at Arizona resident students and which include outreach programs established to work with potential students at the high school level.
2. A program overview which illustrates the coordination between existing and new recruitment and retention programs.
3. Methods for the evaluation of program impact and the establishment of target goals for success. The results of these evaluations shall be reported to the board of regents governing board of the university utilizing a standard format distributed by the governing board of the university.
B. Monies appropriated for this program shall not be used to support remedial course work.
C. Students admitted to the universities must meet the admission criteria established by the board of regents governing board of the university.
Sec. 19. Section 15-1640, Arizona Revised Statutes, is amended to read:
15-1640. Public records exemptions; confidential information; historical records; donor records
A. The following records of a university under the jurisdiction of the Arizona board of regents are exempt from title 39, chapter 1, article 2:
1. Information or intellectual property that is not available to the public and that is a trade secret as defined in section 44‑401 or that is either:
(a) Contained in unfunded grant applications or proposals.
(b) Developed by persons employed by a university, independent contractors working with a university or third parties that are collaborating with a university, if the disclosure of this data or material would be contrary to the best interests of this state.
(c) Provided to a university by a third party pursuant to the terms and conditions of a contract between the university and the third party. In order to qualify for the exemption prescribed in this subdivision, all of the following criteria must be met:
(i) The contract specifies that the information being provided to the university is confidential and that there is a need to maintain that confidentiality.
(ii) The contract is approved before the contract becomes effective by an official of the university who is authorized to sign these contracts.
(iii) The contract includes the name or names of the third party and a general description of the research or other work that is the subject of the contract in a manner sufficient to provide the public with the information necessary to understand the nature of that research or other work.
(iv) Except for the exemptions from public disclosure prescribed in this section, the contract will become a public document that is subject to title 39, chapter 1, article 2 when the contract is executed.
(d) Composed of unpublished research data, manuscripts, preliminary analyses, drafts of scientific papers, plans for future research and prepublication peer reviews.
2. Historical records and materials donated to a university by a private person or a private entity, if restricted access is a condition of the donation. The exemption provided by this paragraph shall expire no later than twenty years after the original donation.
3. All records concerning donors or potential donors to a university, other than the names of the donors and the description, date, amount and conditions of these donations.
B. This section does not affect the issues to be decided between a university and a contracting party, including issues related to the university's right to publish the data and the results of the university's research or discoveries and the timing of any related publication.
C. Any exemption provided by subsection A of this section shall no longer be applicable if the subject matter of the records becomes available to the general public.
Sec. 20. Section 15-1641, Arizona Revised Statutes, is amended to read:
15-1641. University collegiate special plate funds; purpose
A. The Arizona board of regents governing board of each university shall establish a separate university collegiate special plate fund for each university, as described in section 15‑1601, consisting of monies received by the governing board of each university from collegiate plate annual donations for universities pursuant to section 28‑2412.
B. The board of regents governing board of a university shall require each university, as described in section 15‑1601, to submit a plan for approval of the expenditure of monies in the appropriate fund. All monies in the fund shall only be used for academic scholarships. Each university shall annually report to the board of regents governing board of the university the percentage of monies that was expended on behalf of minority applicants.
C. The board of regents governing board of the university may delegate to a state university foundation approved by each university, as described in section 15‑1601, the right to market and promote the purchase of collegiate special plates. No dues, fees or charges except those specified in section 28‑2412 may be levied or collected by a state university foundation in connection with collegiate special plates.
D. The fund established in this section is exempt from section 35‑190 relating to lapsing of appropriations. At the direction of the governing board of each university the state treasurer may invest and divest inactive monies in the fund as provided by section 35‑313. The state treasurer shall credit all interest earned on the fund monies to the fund.
Sec. 21. Section 15-1642, Arizona Revised Statutes, is amended to read:
15-1642. Financial aid trust fund; aid to students with verifiable financial need; endowment
A. The Arizona board of regents may establish a financial aid trust fund for the purposes of providing immediate aid to students with verifiable financial need, including students who are underrepresented in the population of university students or who by virtue of their special circumstances present unique needs for financial aid, and creating an endowment for future financial aid. Subject to the limitations provided in subsection B, paragraph 3, the board may assess a surcharge upon registration fees paid by students for deposit in the fund.
B. The board shall adopt rules to govern the financial aid trust fund, including the following:
1. Twenty-five per cent of the monies received each year shall be placed in the trust fund as a permanent endowment. The remaining monies received shall be used for immediate aid for students with verifiable financial need. At least fifty per cent of the immediate aid monies shall be used for grant aid.
2. The immediate aid monies shall be distributed to the universities on a pro rata basis based on relative student contributions to the fund.
3. The surcharge on student registration shall not exceed one per cent of the registration fee for students taking more than six credit surcharge hours. The surcharge hours for students taking fewer than seven credit hours shall equal one‑half the surcharge assessed students taking more than six credit hours.
C. Each dollar raised pursuant to the surcharge on student registration shall be matched by two dollars appropriated by the legislature.
D. The board shall report every three years to the legislature on the status of the financial aid trust fund. The report shall include the use to which the monies have been put and the impact of such use.
E. Fund monies shall only be used in university assistance programs approved by the board and such monies shall be in addition to, and not in replacement of, existing state or institutional financial aid monies. Assistance may be provided to full‑time or part‑time students. Monies appropriated by this state shall not be used to provide assistance to students who are not residents of this state.
Sec. 22. Section 15-1643, Arizona Revised Statutes, is amended to read:
15-1643. Arizona area health education system; centers; governing boards; duties
A. The Arizona board of regents governing board of the university of arizona shall establish the Arizona area health education system in the college of medicine of the university of Arizona. The governing board of the university of arizona shall appoint a system director.
B. The system shall consist of five area health education centers administered by the director of the Arizona area health education system. Each center shall represent a geographic area with specified populations that the system determines currently lack services by the health care professions.
C. The Arizona board of regents governing board of the university of arizona shall appoint a governing board for each center consisting of not fewer than ten people and not more than twenty people. Board membership shall consist of health care providers and consumers and shall reflect the ethnic representation of the center's geographic area. Each governing board shall make recommendations to the director regarding health professionals' educational needs, local program priorities and the allocation of system monies. Board members are not eligible to receive compensation or reimbursement of expenses.
D. Each center shall conduct:
1. Physician and other health professional education programs that consist of any of the following:
(a) An undergraduate clinical training program.
(b) A graduate program.
(c) Postgraduate continuing education.
2. Programs to recruit and retain minority students in health professions.
3. Continuing education programs for health professionals.
E. The director shall submit a written report on or before November 15 of each year to the governor, the president of the senate and the speaker of the house of representatives. The report shall contain the following:
1. The fiscal status of each center.
2. Information regarding center education, outreach and training programs.
3. Information regarding placement of health care personnel in areas the director determines are underserved by these professionals.
4. An assessment of system accomplishments.
5. Recommendations for possible legislative action.
F. The system shall provide expertise and administrative services to each center.
Sec. 23. Section 15-1643, Arizona Revised Statutes, is amended to read:
15-1643. Arizona area health education system; centers; governing boards; duties
A. The Arizona board of regents shall establish the Arizona area health education system in the college of medicine of the university of Arizona. The board shall appoint a system director.
B. The system shall consist of five area health education centers administered by the director of the Arizona area health education system. Each center shall represent a geographic area with specified populations that the system determines currently lack services by the health care professions.
C. The Arizona board of regents shall appoint a governing board for each center consisting of not fewer than ten people and not more than twenty people. Board membership shall consist of health care providers and consumers and shall reflect the ethnic representation of the center's geographic area. Each governing board shall make recommendations to the director regarding health professionals' educational needs, local program priorities and the allocation of system monies. Board members are not eligible to receive compensation or reimbursement of expenses.
D. Each center shall conduct:
1. Physician and other health professional education programs that consist of any of the following:
(a) An undergraduate clinical training program.
(b) A graduate program.
(c) Postgraduate continuing education.
2. Programs to recruit and retain minority students in health professions.
3. Continuing education programs for health professionals.
E. The director shall submit a written report on or before November 15 of each year to the governor, the president of the senate and the speaker of the house of representatives. The report shall contain the following:
1. The fiscal status of each center.
2. Information regarding center education, outreach and training programs.
3. Information regarding placement of health care personnel in areas the director determines are underserved by these professionals.
4. An assessment of system accomplishments.
5. Recommendations for possible legislative action.
F. The system shall provide expertise and administrative services to each center.
Sec. 24. Section 15-1644, Arizona Revised Statutes, is amended to read:
15-1644. Statewide commission; membership; qualifications; duties; compensation; staffing
A. The Arizona board of regents governing boards of each university shall jointly appoint a statewide area health education centers commission consisting of not fewer than ten members and not more than twenty members who are knowledgeable about the delivery of health care in this state. Members of the commission shall advise the director on a regular basis on the management of the system and on the expenditure of monies appropriated for the system.
B. Commission members serve at the pleasure of the Arizona board of regents governing boards of the universities and are not eligible to receive compensation or reimbursement of expenses.
C. The Arizona area health education system shall provide staffing for the commission.
Sec. 25. Section 15-1645, Arizona Revised Statutes, is amended to read:
15-1645. Health professions field scholarships; purpose; amount; repayment; definition
A. Each area health education center located in this state may grant and administer a scholarship in an amount of not more than eight thousand dollars for each student for each school year to at least two students who are residents of the center's geographic area and who are enrolled in a health professions program at an Arizona university. The scholarship shall be used to defray educational expenses including room and board.
B. A scholarship shall be granted on the condition that the student contractually agree to practice in the center's geographic area for two years or one year of service for each year of scholarship support, whichever is longer, after completing post‑graduation training. If the recipient withdraws from school, the recipient shall repay all scholarship monies within one year of the withdrawal. If the student is dismissed, an appropriate mechanism shall be negotiated to arrange repayment of the remaining unforgiven balance with eight per cent interest.
C. For good cause a center may extend the time period for training prior to scholarship repayment.
D. The Arizona board of regents governing board of the university shall waive all tuition and fees for students granted a scholarship under this section if the legislature appropriates funds for this purpose.
E. For the purposes of this section "health professions program" means enrollment in a school of medicine, nursing, pharmacy or physical therapy.
Sec. 26. Section 15-1646, Arizona Revised Statutes, is amended to read:
15-1646. Board of regents and university scholarships; notification requirements
The universities under the jurisdiction of the Arizona board of regents shall establish policies that ensure fair and equitable access by Arizona students from public, private and charter schools and homeschools to scholarships, including tuition waivers, that are issued solely on the basis of academic merit and for which the universities establish and administer fair and equitable selection criteria. The universities under the jurisdiction of the Arizona board of regents shall:
1. Annually report to the board and publish and disclose to the extent permitted by state and federal law the following information related to each merit based scholarship awarded to students from public, private and charter schools and homeschools by each university, for the prior academic year:
(a) The total number and dollar amount of awards and total number of applicants.
(b) The total number and dollar amount of awards and total number of applicants by type of student.
(c) The specific criteria used to award each scholarship, including average and range of SAT and ACT scores.
(d) The number of newly awarded scholarships and the number of renewed scholarships.
2. Notify students in this state of scholarship awards in a timely manner without regard to whether the students are from public, private or charter schools or homeschools.
Sec. 27. Section 15-1647, Arizona Revised Statutes, is amended to read:
15-1647. Distribution of licensing and patent income; Arizona state university; report
A. Notwithstanding any other law, Arizona state university shall distribute the gross or net income derived from the licensing and other revenues derived from patents including anticancer, antiviral, antifungal or antimicrobial drug discoveries or inventions, including up‑front payments, royalties and any other subsequent or eventual revenue attributable to commercialization.
B. The distribution of income received pursuant to subsection A shall be detailed by Arizona state university in an audited annual report. Arizona state university shall specify the expenditures and actual expenses in the audited annual report. The report shall be distributed annually to the president of the Arizona board of regents, the governor, the president of the senate, the speaker of the house of representatives, the secretary of state and the department of library, archives and public records.
Sec. 28. Section 15-1648, Arizona Revised Statutes, is amended to read:
15-1648. Technology and research initiative fund; purpose
A. The technology and research initiative fund is established consisting of revenues transferred to the fund pursuant to section 42‑5029, subsection E, paragraph 2. The Arizona board of regents governing boards of each university shall jointly administer the fund. The monies in the fund are continuously appropriated to the Arizona board of regents governing boards of each university for distribution pursuant to this section and are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
B. The board governing boards of each university shall jointly adopt rules to administer the technology and research initiative fund in accordance with this section. The board governing boards of each university may jointly allocate up to twenty per cent of the monies in the fund to be used for capital projects relating to new economy initiatives, including debt service, for the universities under its jurisdiction, pursuant to chapter 13, article 5 of this title.
C. The Arizona board of regents governing boards of each university shall receive requests from the individual universities and shall jointly determine the amount and duration of each award. The criteria for the evaluation of each request shall be as follows:
1. The award must be related to one of the following:
(a) A specific academic or research field.
(b) Designed to expand access to baccalaureate or post‑baccalaureate education for time‑bound and place‑bound students.
(c) To implement recommendations of the Arizona partnership for the new economy or the governor's task force on higher education.
2. The award may be used to develop new and existing programs that will prepare students to contribute in high technology industries located in this state.
3. The award may be used in conjunction with matching financial assistance from private industry.
4. The Arizona board of regents governing boards of each university shall give preference to requests that are developed in conjunction with private industry, private entities or federal agencies.
D. The Arizona board of regents governing boards of each university shall jointly submit a report to the governor, the president of the senate and the speaker of the house of representatives on September 1 of each year on the technology and research award program and shall transmit a copy to the secretary of state and the director of the Arizona state library, archives and public records. The report shall include a description of the amount and duration of each new award distributed and a description of the purpose and goals for each award. For existing awards, the Arizona board of regents governing boards of each university shall use a detailed set of performance measures to determine the overall effectiveness of each award.
Sec. 29. Section 15-1649, Arizona Revised Statutes, is amended to read:
15-1649. Fingerprinting academic and nonacademic personnel; civil immunity; definitions
A. The finalist for a security or safety-sensitive position at a university that is under the jurisdiction of the Arizona board of regents shall be fingerprinted as a condition of employment. The finalist shall submit a full set of fingerprints to the university for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
B. A university may use information obtained pursuant to this section only for the purpose of evaluating the finalists for employment in security or safety-sensitive positions. A university may provide information received pursuant to this section to any other university that is evaluating the finalist for employment if the university is under the jurisdiction of the Arizona board of regents. A university may refuse to hire, may rescind an offer of employment to or may review and terminate the employment of a finalist or employee who has been convicted of or who has admitted committing any criminal offense. A university that is considering terminating an employee pursuant to this subsection shall provide due process to the employee in accordance with policies adopted by the Arizona board of regents governing board of the university and the university before taking disciplinary action.
C. A university that relies on information obtained pursuant to this section in making employment decisions is immune from civil liability for use of the information unless the information obtained is false and the university knows the information is false or acts with reckless disregard of the information's truth or falsity.
D. A security or safety-sensitive position shall be identified as a security or safety-sensitive position in the job description and in any advertisements for the position.
E. For the purposes of this section:
1. "Finalist" means any person in the group of individuals actually submitted to the hiring official for selection as a new hire or any employee of a university who seeks a transfer, a reclassification or a reassignment to a security or safety-sensitive position.
2. "Security or safety-sensitive position" means any position designated as a security or safety-sensitive position by a university due to applicable federal or state law or pursuant to rules or policies adopted by the Arizona board of regents governing board of the university or the university.
Sec. 30. Section 15-1650, Arizona Revised Statutes, is amended to read:
15-1650. Annual financial aid report
A. On or before December 1 of each year, the Arizona board of regents governing boards of each university shall jointly submit to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee a financial aid report with information from the two prior fiscal years. The report shall provide information for each institution under the jurisdiction of the board university, a comparison to peer institutions, and summary information for the entire university system.
B. The report shall separately delineate both full‑time resident undergraduate and full-time resident graduate students.
C. For each group identified in subsection B, the annual financial aid report shall detail the following:
1. Cost of attendance, delineated by tuition rates, mandatory fees, room and board charges, book purchases and travel and related personal expenses.
2. Expected family contribution.
3. Gift aid, delineated by source type. Source types include federal, state, institutional and private.
4. Loans, delineated by subsidized amounts, unsubsidized amounts and amounts loaned to the parents of students.
5. Employment, delineated by program type. Program types include federal work-study, institutional work-study, graduate assistantships and outside work.
D. The Arizona board of regents governing boards of each university and the staff of the joint legislative budget committee shall jointly determine the methodology and format of the report.
Sec. 31. Section 15-1650.02, Arizona Revised Statutes, is amended to read:
15-1650.02. Energy and water savings accounts
The Arizona board of regents governing board of each university may establish an energy and water savings account in the same manner as a school district pursuant to section 15‑910.02 and may fund and use monies for guaranteed energy savings contracts pursuant to section 34‑105."
Renumber to conform
Page 8, after line 42, insert:
"Sec. 34. Succession
A. On the effective date of this act, except for the authority, powers, duties and responsibilities specifically retained by the Arizona board of regents pursuant to section 15‑1625, Arizona Revised Statutes, as amended by this act, the governing boards of each university succeeds to the authority, powers, duties and responsibilities of the Arizona board of regents for any matter or action that occurs on or effects that university's campus or campuses, including the authority, powers, duties and responsibilities concerning federal monies that are allocated to the university.
B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the Arizona board of regents in existence before January 1, 2017.
C. Administrative rules and orders that were adopted by the Arizona board of regents continue in effect until superseded by administrative action by the governing board of each university.
D. All administrative matters, contracts and judicial and quasi judicial actions, whether completed, pending or in process, of the Arizona board of regents on January 1, 2017 are transferred to and retain the same status with the governing board of each university.
E. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the Arizona board of regents retain their validity for the duration of their terms of validity as provided by law.
F. All data and investigative findings and all appropriated monies that remain unexpended and unencumbered on January 1, 2017 of the Arizona board of regents are transferred to the governing board of each university.
G. Title to all real and personal property that is owned by the Arizona board of regents on the effective date of this act is transferred to the university for which use or benefit the property was originally obtained, or, if the property was acquired for the use or benefit of all three universities, that property shall be transferred and allocated in an equitable or proportionate manner between the three universities.
Sec. 35. Effective date
This act is effective from and after December 31, 2016.
Sec. 36. Conforming legislation
The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty‑third legislature, first regular session."
Renumber to conform
Amend title to conform
